The URL can be used to link to this page

Home My WebLink AboutCity Council Packet 02-09-2021 SpecialCity Council 1 of 1 February 9, 2021 CITY OF PLYMOUTH AGENDA Special City Council February 9, 2021, 5:30 PM 1. CALL TO ORDER 1.1 Instructions to participate in the Virtual Council Meeting 2. TOPICS 2.1 Energy Usage and Solar Options for City facilities Presentation Planned Project List PIC Solar Example 2.2 Set future Study Sessions February March April May 3. ADJOURN 1 Special City Council February 9, 2021 Agenda Number:1.1 To:Dave Callister, City Manager Prepared by:Sandy Engdahl, City Clerk Reviewed by:Laurie Hokkanen, Administrative Services Director Item:Instructions to participate in the Virtual Council Meeting 1. Action Requested: The Mayor provides instructions for the public to observe the meeting by phone or online. 2. Background: Council meetings will be conducted virtually (via Zoom webinar/conference call) due to the state of local emergency for the COVID 19 pandemic. To observe/listen to the meeting, please register in advance at: https://us02web.zoom.us/webinar/register/WN_mLpR9XNCTce3_H7S3LTNSw No public comments are taken at study sessions. Comments can be emailed to the Mayor and City Council at council@plymouthmn.gov or to the City Manager at dcallister@plymouthmn.gov. Contact City Clerk Sandy Engdahl at sengdahl@plymouthmn.gov with additional questions. 3. Budget Impact: N/A 4. Attachments: 2 Special City Council February 9, 2021 Agenda Number:2.1 To:Dave Callister, City Manager Prepared by:Amy Hanson, Fleet and Facilities Manager Reviewed by:Michael Thompson, Public Works Director Item:Energy Usage and Solar Options for City facilities 1. Action Requested: Review and discuss energy usage and solar options for City facilities. 2. Background: In 2020 Council requested staff to research solar panels and other energy reducing options for City facilities. Staff will provide an update on City facility energy usage along with a review of past and upcoming energy saving projects. Energy Management Solutions (EMS) will provide a short presentation to discuss different approaches for solar usage at City facilities and estimated financial impacts. 3. Budget Impact: N/A 4. Attachments: Presentation Planned Project List PIC Solar Example 3 City Facilities Energy Discussion February 9, 2021 City Council Study Session 4 Introductions 5 Benchmarking Energy Usage •Monitor usage at City facilities. •Through this data, staff develop and implement cost saving measures. •Reduce energy usage systematically (i.e. the low hanging fruit). •When is equipment due for replacement •What is the pay back period •Timing with other facility projects. •Supports Council’s goal of exploring ways to reduce City’s carbon footprint. 6 Benchmarking Energy Usage 7 Benchmarking Energy Usage 8 Benchmarking Energy Usage 9 2020 Reduction Measures •City Hall LED conversion •$3,213 saving with a payback of 4.7 years •Estimated 25,561 KWH annual reduction •Ice Center LED conversion •$60,327 savings with a payback of 2.5 years •Estimated 265,098 KWH annual reduction •City Hall & Maintenance Efficiencies •Programmable light timers and occupancy sensors •Programmable thermostats •Motion activated faucets 10 2020 Reduction Measures •COVID-19: 25% Bonus •Ice Center •$9,933 in estimated savings (November 2020 to March 2021) •Plymouth Creek Center •$600 in estimated savings (November 2020 to March 2021) 11 Planned 2021 Activities •City Hall HVAC Controls Update •Zachary Treatment Plant LED Conversion •Exterior Parking Lots LED Conversion •Installation of EV charges 12 Xcel Energy Update •30% of the energy is renewable today •80% will be renewable by 2030 •100% by 2050 •Regardless of city approach, the city is currently purchasing renewable energy and will continue to increase those percentages over the next years. 13 Solar Options at city facilities •PPA (Power Purchase Agreement) •Pros: •No upfront cost •City owns array at end of term •Cons: •No guaranteed savings •Will cost more than standard xcel rate •Cash Purchase •Pros: •Highest energy savings •No long term contract •Cons: •High upfront costs •No guaranteed savings •Community Garden Host Site •Pros: •No upfront costs •Can involve local community •Guaranteed savings •Cons: •Lowest energy savings •No ownership in the garden 14 PIC Example 15 Federal Tax Credit 16 Recycling •95% of the solar panels are recycled at the end of life •Supports can be used for new of more efficient panels •Supports that are removed and can recycled 17 Timing •Solar market is currently busy due to the increase of demand •It may take up to 18 months to install the solar system due to demand and schedules •To ensure current prices, contracts should be implemented by September of 2021 18 Questions •Does the Council want staff to pursue any of these options at City facilities? •Any questions about the City’s currently strategy to energy reduction? 19 City of Plymouth - Project List Summary Using OUR Energy to Save YOURS 1/29/2021 (Starting 1/1/2020)1,560 304 44 391 Savings in Process Item #Description Status Gas/Electric TH/kWh Savings Annual Savings Rebate Cost Payback (yrs)Cumulative Savings Completion Date 1 City Hall LEDs with Bonus Complete Electric 25,561 2,300.49$ 2,230.05$ 12,963.00$ 4.67 3,213.27$ 8/26/2020 2 Ice Arena LEDs Complete Electric 265,098 23,858.82$ 39,213.75$ 100,000.00$ 2.55 60,327.17$ 3/12/2020 3 Well 14 Pump VFD Complete Electric 11,788 1,060.92$ 4,973.42$ 10,000.00$ 4.74 5,502.43$ 7/31/2020 4 PCC Expansion Design Assistance Complete Electric - -$ 7,500.00$ -$ - 7,500.00$ 7/8/2020 5 City Hall RTU and Exhaust In Process Electric 18,792 1,691.24$ 4,451.50$ 29,800.00$ 14.99 6 Public Safety Controls In Process Electric 10,150 913.48$ -$ 64,800.00$ 70.94 7 City Hall Controls In Process Electric 20,920 1,882.80$ 3,347.20$ 8 City Hall Ionization In Process Electric 14,382 1,294.38$ 1,647.00$ 12,000.00$ 8.00 9 Public Safety Ionization In Process Electric 21,027 1,892.46$ 2,403.00$ 12,000.00$ 5.07 10 Fire Station 3 LEDS In Process Electric - -$ -$ -$ - 11 Covid 25% Invoice Bonus - Ice Arena In Process Electric - `9,933.21$ -$ - 12 Covid 25% Invoice Bonus - PCC In Process Electric - -$ 600.00$ -$ - 13 Well House Wall Packs In Process Electric 1,953 175.81$ 500.00$ 6,684.06$ 35.17 14 EV Charger Grant In Process Electric - -$ -$ -$ - 15 Public Works Boiler Replacement In Process Gas 1,050 588.00$ 1,400.00$ 17,500.00$ 27.38 16 Zachary LED (Est)In Process Electric 36,792 3,311.28$ 1,000.00$ - 17 Gas Contract (PW, PCC)In Process Gas 9,500.00$ - 18 Parking Lot Lights (Est)In Process Electric 20,000 1,800.00$ 1,250.00$ 19 Energy Star Evaluation In Process 20 Fire Station 2/3 In Process Gas/Electric 5,000.00$ - Gas (TH)1,050 Total Electric (kWh)426,513 50,269.69$ 85,449.13$ 265,747.06$ 3.59 76,542.87$ Note: Projects "In Process" are estimated rebate and savings numbers, these will vary upon final approval from the utility.Average Gas Rate 0.56$ $/Therm Average Electric Rate 0.09$ $/kWh Prepared By: Gary A. Swanson, PE (612)819-7975 gswanson@emsenergy.com 51,531.37$ Acres of US Forest in 1 yr (Carbon Sequestered): Total Rebate $ Received 53,917.22$ 426,513 1,050 76,542.87$ Annual Electric Savings (kWh) Annual Gas Savings (TH) Cumulative $ Savings Greenhouse Gas Equivalence SavingsEnergy Efficiency Savings Summary Total MMBTU's saved: Metric Tons of CO2 Saved: Residential Homes Electric Use per 1 yr (CO2 Emissions): 20 City of Plymouth - Ice Arena Solar Opportunity Summary Using OUR Energy to Save YOURS 12/17/2020 City of Plymouth Ice Arena Solar 3650 Plymouth Blvd., Plymouth, MN 55446 665 785,500 1,200,000 Options: 1 PPA - Power Purchase Agreement Pros: No upfront costs or maintenance costs, shorter term than CSG option, immediately cashflow positive, and City owns array at end of term. Cons: Low energy cost savings for the first 20 years and you are responsible for the system after 20 years. No guarantee of savings. 2 Cash Purchase Pros: No long-term contract required, City owns array right away, and the overall energy cost savings are 2-4x greater than any other option. Cons: High upfront costs and 12-year payback before the solar garden becomes cashflow positive. No guarantee of savings. 3 Community Solar Garden Host Site (CSG) Pros: No upfront costs or maintenance costs throughout life of the term, immediately cashflow positive, can involve the local community, and guaranteed energy cost savings. Cons: The lowest energy cost savings through the full term and the City facilities can only utilize a maximum of 40% of the energy generated. Do not own the solar garden system. Option Details: Production (kWh)Upfront Cost Term REC's Owned by 785,500 -$ 20 yr 3rd Party 785,500 1,038,500.00$ 20 yr Plymouth 785,500 -$ 25 yr Xcel Economic Value: Note: Prepared By: Mark Goudreault (952) 797-3025 MGoudreault@EMSenergy.com PPA 748,960.00$ Cash Purchase 1,379,000.00$ Community Solar 212,500.00$ Vendor leases your roof for a 25-year term to develop a community solar project. The City can subscribe to 40% of the array’s output (primary subscriber), with the remainder of the subscription made available to City of Plymouth investment-grade commercial businesses (40%) and residential subscribers (20%). Vendor would be responsible for the subscription fulfillment and will work with the City of Plymouth to develop the subscription process. The current demand for community solar subscriptions within the Twin Cities metro area far exceeds the available supply today and for the foreseeable future. By hosting a solar garden and making subscriptions available within your community, you are providing an opportunity that would otherwise not be available to City of Plymouth commercial businesses and residential customers. Cash Purchase 665 NPV Community Solar 665 Project Name Project Address Approx. System Size (kW DC) Approx. Annual Production (kWh) Ice Arena Annual Electric Usage (kWh) City of Plymouth leases your roof to the third-party Owner at a nominal rent for a period of 15 years + 5-year option. The project is constructed at vendors expense, vendor sells power to the City at a PPA rate that is discounted to what it normally pays to the utility. The City can assume ownership of the solar array at a fair market value after 15 years. This option makes sense for entities that are not able to capture the investment tax credit (non-profits), and the size of the array enables the PPA rate to be lower than what the City is paying for your power today. At the time the ownership transfer to the City, the savings can increase significantly, as the City is no longer paying a third-party owner for the power produced by the array. City of Plymouth makes the upfront capital investment to construct the project and has responsibility for ongoing insurance & maintenance over time, much like procuring other building equipment. Although the inability to capture the investment tax credit increases the payback time for the solar array, the City owns the Solar Renewable Energy Credits and has the right to claim the environmental attributes of the solar power being generated. The system also qualifies for a demand credit rider from Xcel; this rate applies to all generation produced between the hours of 1 PM and 7 PM during all months of the year, and compensates customers per kWh generated. The standard rate will be updated with Xcel Energy rate cases and should increase with utility costs, because the credit’s methodology is based on “embedded costs” as opposed to “avoided costs.” System Size (kW DC) PPA 665 21 Special City Council February 9, 2021 Agenda Number:2.2 To:Dave Callister, City Manager Prepared by:Sandy Engdahl, City Clerk Reviewed by:Laurie Hokkanen, Administrative Services Director Item:Set future Study Sessions 1. Action Requested: Schedule Study Sessions and/or add topics as desired. Calendars are attached to assist with scheduling. 2. Background: Pending Study Session Topics (at least three Council members have approved the following study items on the list): None at this time Other Council requests for Study Session Topics: None at this time Staff requests for Study Session Topics and/or changes: February 23 Study Session: - Remove topic of discussion (Comstock Lane and Schmidt Lake Road). This will be rescheduled in August. - Replace with conducting interviews for positions on HRA (two positions - Ward 4 and At Large). Meeting will start at 5 p.m. 3. Budget Impact: N/A 4. Attachments: February March April May 22 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SUN TUES MON WED THUR FRI SAT February 2021 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov *HRA - Housing and Redevelopment Authority 7:00 PM REGULAR COUNCIL MEETING Council Chambers PRESIDENTS DAY CITY OFFICES CLOSED 5:30 PM SPECIAL COUNCIL MEETING Solar Options for City Facilities Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Council Chambers 6:00 PM SPECIAL HRA* MEETING Strategic Plan Council Chambers 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 23 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March 2021 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov 5:00 PM SPECIAL COUNCIL MEETING County Road 73 Area Study Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers SUN TUES MON WED THUR FRI SAT 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 24 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 April 2021 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov SUN TUES MON WED THUR FRI SAT 7:00 PM REGULAR COUNCIL MEETING Council Chambers CHANGES ARE 5:30 PM SPECIAL COUNCIL MEETING Instant Runoff Voting Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 25 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 May 2021 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR 763-509-5080 plymouthmn.gov SUN TUES MON WED THUR FRI SAT 31 MEMORIAL DAY CITY OFFICES CLOSED 7:00 PM REGULAR COUCIL MEETING Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers 30 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Council Chambers 26